Please answer the multiple choice questions below:

1. A depreciable property is sold by a taxpayer at a price below its capital cost, with no assets remaining in the related CCA class and resulting in a negative UCC balance. What is the tax consequence?

a) Terminal loss

b) Capital loss

c) Capital gain

d) Recapture

2. An individual earns business income and property income. Which of the following statements regarding the distinction between business income and property income is true?

a) Attribution rules apply to both property income and business income.

b) Attribution rules apply to business income but not to property income.

c) The short-year pro-ration for capital cost allowance applies to the computation of business income, not property income.

d) The short-year pro-ration for capital cost allowance applies to the computation of property income, not business income.

3. In 2019, Sports Equipment Inc. provides its employee, Miigwan, with an annual car allowance of $10,000. This allowance is included in Miigwan's employment income for 2019. Miigwan drives 8,000 km for work in 2019. What amount of deduction can Sports Equipment make with respect to this car allowance when calculating net business income for tax purposes for 2019?

a) $0

b) $4,460

c) $4,640

d) $10,000

4.Mohad uses the second floor of his home exclusively as a home office for his unincorporated business and does not have another place of work. The space of the second floor is 1,000 square feet, while the total space of his home is 4,000 square feet. In the current taxation year, his business had $10,000 of income before home office expense and he incurred the following expenses relating to his home: Utilities and repairs $6,000 Home insurance and property taxes $2,000 Mortgage principal payments $30,000 Mortgage interest $20,000 What is the maximum amount Mohad is allowed to deduct from his business income?

a) $1,500

b) $2,000

c) $7,000

d) $14,500

5. Arbutus Ltd. operates out of a building and has incurred $1,300 in landscaping expenses for that building. Arbutus paid $300 in the current taxation year and will pay $1,000 in the following taxation year. How much is Arbutus allowed to deduct when calculating net income for tax purposes for the current taxation year?

a) $0

b) $300

c) $1,000

d) $1,300